There's been a ton of buzz on Social Media over the last 2 years.  Like most new marketing arenas, this one is susceptible to hyperbole.

It has been my experience that Social Media can create excitement and it's perfectly suited for real time conversations with clients.  It's worth noting that those conversations can be either positive or negative and they require attention from both parties.

I caution you against focusing too much of your marketing spend on Social Media though.  The bottom line is Social Media isn't all that good at impacting online retail purchases.  Maybe one day it will get there - but it isn't yet!  Take a look at this recent article from the USA Today.  Here's some excerpts:

• less than 2% of orders were the result of shoppers coming from a social network
• email and search advertising were much more effective vehicles for getting buyers
• Social Media outreach is somewhat effective at distributing news about short-term deals (here 5%-7% of purchases are influenced by Social Media)
• traditional online marketing (email and search) work best at impacting online retail purchases